Dividend Yield The market price for Macro Corporation closed at $40.98 and $59.0
ID: 2395509 • Letter: D
Question
Dividend Yield The market price for Macro Corporation closed at $40.98 and $59.00 on December 31, current year, and previous year, respectively. The dividends per share were $0.50 for current year and $0.59 for previous year. Determine the dividend yield for Macro on December 31, current year, and previous year. Round percentages to two decimal places. Current year % Previous year % b. The dividend yield increased from the previous year to the current year. This is a result of a(n) increase in the dividend relative to stock price.
Explanation / Answer
Solution a:
Dividend yield = Dividend per share / Current stock price
Current year = $0.50 / $40.98 = 1.22%
Previous year = $0.59 / $59 = 1.00%
Solution b:
The dividend yield increased from the previous year to the current year. This is a result of an increase in the dividend relative to stock price.